Dogecoin Plummets 15.7% After Musk Denies D.O.G.E. Agency Ties

Elon Musk's recent clarification on the Department of Government Efficiency (D.O.G.E.) has sent shockwaves through the Dogecoin community, leading to a significant price decline. During a town hall hosted by Musk’s America PAC, he addressed growing speculation about the potential ties between the D.O.G.E. agency and the meme coin DOGE. Musk emphasized that the department, which aims to improve the U.S. federal government’s efficiency by at least 15%, has no plans to integrate Dogecoin or any other cryptocurrency into its operations. This clarification effectively dispelled rumors that the agency might boost Dogecoin adoption, which had previously caused a brief spike in the meme coin’s price.

Speculation around the D.O.G.E. agency and its potential connection to Dogecoin intensified in February when the official website for the agency displayed the familiar Shiba Inu dog that represents Dogecoin. This generated excitement within the meme coin’s community, leading to hopes that the coin might gain real-world use cases and push above its all-time high of $0.73. However, Musk’s latest remarks made it clear that any similarities between the coin and the agency are purely coincidental, effectively dismissing the possibility of a governmental role for the asset.

Dogecoin’s price has been on a sharp decline in recent days, trading at $0.168 at the time of writing, down by 15.7% over the past seven days. The announcement has left many investors disappointed, as discussions on social media platforms, especially X, reveal that many had been hoping for a fusion between the coin and the government initiative. Despite the setback, Musk’s broader sentiment toward Dogecoin remains supportive. He has previously referred to it as the “people’s cryptocurrency,” but without fresh use cases or positive momentum in the broader crypto market, the DOGE price risks sliding further to test lower support zones around the $0.15 price level.